US

Iraq pullout in 16 months, says Obama

sneha — Mon, 01 Dec 2008 20:22:31 +0530

US president-elect Barack Obama reiterated on Monday that all American combat troops would be withdrawn from Iraq in 16 months, even while residual forces could remain longer.

"At the same time, I will listen to my commanders on the ground," Obama maintained at a press conference here at which he introduced his national security team. Hillary Clinton, who has been named the new Secretary of State, stood to Obama's left.

Obama said the Status of Forces Agreement (SOFA) agreed to between the US and Iraq had made the 16-month timeline possible.

"Our number one priority is to ensure our troops remain safe in the transition period," Obama pointed out.

He also announced the Defence Secretary Robert Gates would continue in the job in the new administration that takes office on January 20.

Russia building missiles to counter US?

megha — Mon, 01 Dec 2008 13:01:06 +0530

Russia is developing missiles designed to avoid being hit by space-based missile defence systems that could be deployed by the United States, a top Russian general was quoted as saying on Monday.

"Development is now under way on the combat outfitting of missiles whose flight falls outside the range of space-based missile defence systems," Nikolai Solovtsov, the commander of Russia's missile forces, told Interfax News Agency.

Solovtsov called the project a countermeasure to what he described as US plans to deploy weapons in space, according to Interfax.

"Judging by an analysis of US work in new weapons development and creation, they truly see space as a potential sphere for armed conflict and in connection with this are not withdrawing from plans to place weapons in space," he said.

He also said Russia was "perfecting the structure and makeup" of its missile forces in response to a planned US land-based missile shield, a controversial project that has provoked furious reactions from Moscow.

Solvtsov said the steps would include deployment of RS-24 intercontinental missiles, designed to overcome systems such as the US missile shield.

In recent months Moscow has sharply criticised Washington's plans to put an anti-missile radar facility in the Czech Republic and interceptor missiles in Poland, despite US assurances that the system is not directed against Russia.

Russia has also reacted warily to US moves that it has seen as contributing to the militarisation of outer space under the hawkish administration of President George W Bush.

In February, when the US military was planning to shoot down a rogue US spy satellite, Russia's defence ministry said the plans looked like a veiled weapons test and an "attempt to move the arms race into space."

That month Russia and China proposed a new treaty banning the use of weapons in space, but the idea was rejected by the White House.

Pak must cooperate in Mumbai probe: Rice

megha — Mon, 01 Dec 2008 08:16:52 +0530

With India blaming Pakistan-based elements for the Mumbai terror strikes, the US on Monday said Islamabad must "follow evidence wherever it leads" and lend "absolute" and "transparent" cooperation in the probe as Secretary of State Condoleezza Rice headed for New Delhi.

Rice and Bush wanted an opportunity "to express the condolences of the American government directly to the Indian government and the Indian people," Rice spokesman Sean McCormack said.

Rice was scheduled to leave on Sunday night for a meeting in London and then travel to Brussels for a NATO gathering. On Wednesday, following the NATO meeting, she will travel to New Delhi, according to her new itinerary.

"Secretary Rice's visit to India is a further demonstration of the United States' commitment to stand in solidarity with the people of India as we all work together to hold these extremists accountable," White House press secretary Dana Perino said in a statement.

Rice had planned to attend the meeting of NATO foreign ministers on Tuesday and Wednesday, with talks focusing on a broad international agenda, including Afghanistan, Georgia and the Ukraine.

From there she was to visit Rome, Helsinki and Copenhagen, but it was unclear whether the trip to India would cancel or only postpone those visits.

Rice spoke with President-elect Barack Obama about India earlier on Sunday, McCormack said. It was the third phone conversation between the two since the attacks. Rice has also been in daily phone contact with Indian and Pakistani officials.

The announcement of Rice's trip came hours after Bush assured India's leader that the US government will put its full weight behind the investigation into the attacks in Mumbai.

Earlier on Sunday, a Republican senator endorsed a campaign suggestion from President-elect Barack Obama - appointment of a special envoy, perhaps former President Bill Clinton, to the disputed region of Kashmir - as the US seeks to ease tensions between India and its nuclear-armed neighbor Pakistan.

The Pak connection

The lone gunman captured by police after the attacks told authorities he belonged to a Pakistani militant group with links to Kashmir, a senior Indian police officer said.

India has blamed "elements" from Pakistan for the 60-hour siege during which suspected Muslim militants hit 10 sites across India's financial capital, leaving at least 174 dead.

Bush told India's prime minister, Manmohan Singh, in a telephone call that "out of this tragedy can come an opportunity to hold these extremists accountable and demonstrate the world's shared commitment to combat terrorism," White House spokesman Gordon Johndroe said in a statement.

In addition to the Americans killed in the coordinated shooting rampage in India's financial capital, the foreigners among the dead included Germans, Canadians, Israelis and nationals from Britain, Italy, Japan, China, Thailand, Australia and Singapore.

Bush told the prime minister that "he has directed the state and defence departments along with other federal agencies to devote the necessary resources and personnel to this situation," Johndroe said.

Despite India's claim, Pakistan's ambassador to the United States, Husain Haqqani, said: "I don't think that this is the time for India or anybody in India to accuse Pakistan. It's time to work with Pakistan. Pakistan is now a democracy.

"India is a democracy. And as two democracies, we need to strengthen each other, rather than fall into the trap of the terrorists, who want us to fight with each other so that they can get greater strength."

India repeatedly has accused Pakistan of complicity in terrorist attacks on its soil, many of which it traces to militant groups fighting Indian rule in the divided Himalayan territory of Kashmir.

The US has tried to persuade Pakistan to shift its security focus from India, with which it has fought three wars, to Islamic militants along the Afghan border.

Obama told Time magazine in an interview in October that "Kashmir in particular is an interesting situation ... that is obviously a potential tar pit diplomatically." He spoke of devoting "serious diplomatic resources to get a special envoy in there to figure out a plausible approach."

When asked if that sounded like a job for Clinton, Obama replied, "Might not be bad" and that they had spoken about the issue when they had lunch in September in Clinton's New York office.

The suggestion of sending an envoy won support from a leading Republican senator.

"I would think that might be a good idea because, it appears to me, that we have an interlocking situation of Afghanistan, Pakistan and India," said Sen Richard Lugar of Indiana, top Republican on the Senate Foreign Relations Committee.

Asked specifically about Clinton as a possible mediator, Lugar said: "I think he could do a great job there." Lugar and Haqqani appeared on ABC's "This Week."

Bush pledges full support to terror-struck India

megha — Sun, 30 Nov 2008 08:01:30 +0530

President George W Bush on Saturday pledged full US support to India as it investigates the deadly terrorist attacks in Mumbai, saying the killers "will not have the final word."

Bush spoke at the White House after returning from the Camp David presidential retreat where he spent Thanksgiving and monitored the rampage.

The coordinated assaults left nearly 183 people dead, including six Americans, and raised tensions between India and neighboring Pakistan, two nuclear-armed rivals.

"The killers who struck this week are brutal and violent," Bush said on the South Lawn with first lady Laura Bush at his side. "But terror will not have the final word. The people of India are resilient.

"The people of India are strong. They have built a vibrant, multiethnic democracy. They can withstand this trial."

Before leaving Camp David in the mountains of Maryland, he held an hour-long video-teleconference with US diplomats in India. He said his administration had kept President-elect Barack Obama informed since the siege began on Wednesday.

"We pledge the full support of the United States as India investigates these attacks, brings the guilty to justice and sustains its democratic way of life," Bush said.

"The leaders of India can know that nations around the world support them in the face of this assault on human dignity. And as the people of the world's largest democracy recover from these attacks, they can count on the people of the world's oldest democracy to stand by their side."

Those participating in the videoconference included Secretary of State Condoleezza Rice; David Mulford, the US ambassador to India; Paul Folmsbee, consul general at the US consulate in Mumbai; and members of Bush's national security team.

"President Bush thanked our ambassador and our consul general for all the work they've done to help Americans affected by the terrorists," White House press secretary Dana Perino said.

Obama called Indian Prime Minister Manmohan Singh on Friday night to offer condolences and was monitoring the situation.

The attacks, which killed at least 183 people, including 18 foreigners, in India's financial capital, ended on Saturday when commandos killed the last three gunmen inside a luxury hotel.

FBI agents were en route to India on Saturday. A second group of investigators was on alert to join the first team if necessary. The State Department warned US citizens still in the city that their lives remain at risk.

"The FBI continues to monitor the situation in Mumbai and the Counterterrorism Division is reviewing all of the information and intelligence available," bureau spokesman Richard Kolko said.

The State Department's latest travel alert warned US citizens traveling to or already in India that the Mumbai terrorist attacks "in part targeted American citizens and other Westerners for the first time and tragically demonstrate that even in five-star luxury hotels, security is not equipped to deter such attacks."

"US citizens should take into account this new reality and exercise caution when visiting India. Prudent security measures include maintaining a high level of vigilance, avoiding crowds and demonstrations and keeping a low profile by not calling attention to one's nationality," the State Department said in the alert issued on Saturday night.

Pak under scanner

A previously unknown Muslim group with a name - suggesting origins inside India - claimed responsibility, but Indian officials said the sole surviving gunman was from Pakistan and they pointed a finger of blame at Pakistan, which vehemently defended itself against allegations that it was involved in the attacks.

Pakistan's ambassador to the US, Husain Haqqani, said in a statement that his country is "confronting the menace of terrorism with great vigor." Haqqani insisted "it is unfair to blame Pakistan or Pakistanis for these acts of terrorism even before an investigation is undertaken."

The US is concerned about a potential flare-up between India and Pakistan. To ease tensions, intelligence officials are searching for clues that might identify the attackers even as Indian officials claim "elements in Pakistan" were involved.

A US counterterrorism official said some "signatures of the attack" were consistent with the work of Pakistani militant groups known as Lashkar-e-Taiba and Jaish-e-Mohammed that have fought Indian troops in the disputed Himalayan region of Kashmir and are reported to be linked to al Qaida.

But the official emphasized it was premature to pinpoint who was responsible for the attacks.

The US Embassy in New Delhi, India, said six Americans were killed but did not release their names. Among the US dead, according to information from organizations to which they belonged, were:

- Rabbi Gavriel Noach Holtzberg, 29, and his wife, Rivkah, 28. They were killed in an attack on the ultra-Orthodox Chabad-Lubavitch movement's center in Mumbai, Rabbi Zalman Shmotkin said in New York. The Israeli Foreign Ministry said Rivkah Holtzberg only had Israeli citizenship.

- Bentzion Chroman, an Israeli with dual US citizenship who was visiting the center.

- Rabbi Leibish Teitelbaum of Brooklyn, NY, who was visiting the center.

- Alan Scherr, 58, and daughter Naomi, 13, of Virginia, who died in a cafe on Wednesday night. They lived at the Synchronicity Foundation sanctuary about 15 miles southwest of Charlottesville, Va, and were among 25 foundation participants in a spiritual program in Mumbai, according to a spokeswoman for the foundation.

US fears Pakistani role in Mumbai attacks

sitansu — Sat, 29 Nov 2008 18:01:17 +0530

US officials are worried about a possible surge in violence between India and Pakistan after the bloody attacks in Mumbai that killed at least 183 people, including five Americans.

To ease tensions, intelligence officials are searching urgently for clues that might identify the attackers even as Indian officials claim "elements in Pakistan" were involved.

FBI agents were preparing to fly to India to investigate the bloody attacks in the Indian financial capital as the State Department warned US citizens still in the city that their lives remain at risk.

A US counterterrorism official said some "signatures of the attack" were consistent with the work of Pakistani militant groups known as Lashkar-e-Taiba and Jaish-e-Mohammed that have fought Indian troops in the disputed Himalayan region of Kashmir and also are reported to be linked to al Qaida.

But the official emphasised it was premature to pinpoint who was responsible for the attacks. Another official, specialising in counterintelligence, also cautioned against rushing to judgment on the origins of the gunmen who waged a two-and-a-half-day rampage through India's leading commercial center before being killed.

The US officials spoke on condition of anonymity due to the sensitivity of the situation.

India and Pakistan have fought two of their three wars over Kashmir. US officials are concerned about a flare-up in animosity similar to one that occurred after Pakistani militants attacked the Indian parliament in December 2001, the officials said.

Underscoring those fears, Secretary of State Condoleezza Rice has called the foreign minister of India twice, along with Pakistani President Asif Ali Zardari, since the crisis began.

"There were very worrying tensions in the region," said Gordon Duguid, a State Department spokesman.

"She was calling the president of Pakistan to get his read on how those tensions might be affected," Duguid said.

As US officials worked to ease hard feelings between India and Pakistan, a tentative rapprochement between the two nuclear-armed rivals could hang in the balance.

Pakistan's ambassador to the US, Husain Haqqani, said in a statement that his country is "confronting the menace of terrorism with great vigor." Haqqani insisted "it is unfair to blame Pakistan or Pakistanis for these acts of terrorism even before an investigation is undertaken."

President George W Bush pledged cooperation with Indian authorities and mourned the deaths of at least 183 people at the hands of gunmen.

"My administration has been working with the Indian government and the international community as Indian authorities work to ensure the safety of those still under threat," Bush said in statement on Friday.

Bush was receiving regular updates, White House press secretary Dana Perino said on Friday night. Senior administration officials were focused on ensuring that Americans were being helped in every way possible, she said.

Duguid, the State Department spokesman, cautioned that "Americans are still at risk on the ground," and repeated calls for US citizens not to travel to the stricken city at least through the weekend.

Officials were working out the final details with Indian diplomats on Friday for the departure of an FBI team, said US authorities, who also spoke on condition of anonymity because of the delicate nature of the operation. A second group of investigators was on alert to join the first team if necessary.

US officials were checking with Indian authorities and hospitals to learn more about the extent of casualties.

Duguid said consular staff would continue to work with Indian police until all missing Americans were accounted for.

US officials have activated a phone tree to contact American citizens who registered with the US consulate in Mumbai, State Department spokesman Robert McInturff said.

President-elect Barack Obama has spoken by telephone with Rice about the attacks and received several intelligence briefings, State Department officials said. They said Rice spoke again on Friday with Indian Foreign Minister Pranab Mukherjee.

"These terrorists who targeted innocent civilians will not defeat India's great democracy, nor shake the will of a global coalition to defeat them," Obama said in a statement.

"The United States must stand with India and all nations and people who are committed to destroying terrorist networks, and defeating their hate-filled ideology," he added.

The State Department set up a call center for Americans concerned about family members who may be in Mumbai. The number is 1-888-407-4747.

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Obama hails India's 'great democracy' in face of terror

US security pact propels Iraq PM to dominance

megha — Sat, 29 Nov 2008 14:01:04 +0530

Parliament's approval of a security pact with the US has propelled Prime Minister Nouri al-Maliki into a position of strength unsurpassed among Iraqi political leaders since the fall of Saddam Hussein.

Furious dealmaking preceded the vote on Thursday, compelling al-Maliki to make a wide range of concessions to Sunni lawmakers in exchange for their support.

As a result, he emerged with his main goal intact: a historic agreement in which the last American soldier would leave Iraq by January 1, 2012, and restore the country's full national sovereignty.

Coming on top of a string of military and political successes this year, the agreement has given al-Maliki the aura of a national leader who rises above Iraq's chronic sectarian and ethnic divisions to pursue the greater interest.

Experts are divided on how long will the prime minister's political dominance will last however.

"The prime minister is involved in political struggles that have only just begun, and it is far from clear how well he can survive the power struggles and elections to come," said Anthony Cordesman, a former Pentagon analyst now at the Center for Strategic and International Studies in Washington.

"The insurgency is still there, Arab-Kurdish rivalries are growing, Shiite-Sunni tensions are still critical, and no one can predict the future power struggle within each key ethnic and sectarian faction," Cordesman said.

Al-Maliki risked his future on the agreement with the United States, which many Iraqis see as an occupying power. Failure to win approval might have forced him to step down.

"Some thought they could use the agreement to weaken the prime minister," said Haidar al-Ibadi, a senior Shiite lawmaker and a close al-Maliki aide. "Frankly, they were playing with fire."

Realizing the stakes, a group of mostly Sunni lawmakers sought concessions from al-Maliki in exchange for their support. Al-Maliki said that amounted to blackmail but, in the end, he met most of their demands in a three-page "Charter of Political Reform."

The declaration doesn't have the force of law. But it has committed al-Maliki to make changes on several thorny issues he had been reluctant to undertake.

Chief among them are the full integration into the security forces and government agencies of thousands of US-backed Sunni fighters who revolted against al-Qaida in Iraq and recruiting more Sunnis in the Shiite-dominated army and police.

He also pledged to work for the release of thousands of Sunni security detainees not charged with specific crimes and allow wider participation in top-level decision making.

"Many political blocs, including those close to al-Maliki, have had fears that al-Maliki was becoming authoritarian. The Charter of Political Reform will stop him from becoming a one-man government," said Adnan al-Dulaimi, a Sunni politician and bitter critic of the prime minister.

The Sunnis had long been alone in publicly accusing al-Maliki of monopolizing power. Recently, however, some Kurds have started to repeat the allegation.

The Kurds complained that the prime minister was violating the constitution by creating tribal "support councils" across Iraq ostensibly as a backup for security forces.

Critics see the councils as a move to undercut rival political parties and gain patronage in the Shiite south of the country. The quarrel came to a head last week, when the country's three-member Presidential Council publicly berated al-Maliki and ordered him to disband the councils or find legal coverage for them.

That blow to al-Maliki raised doubt whether he could muster enough support to retain his office after the 2009 general election. However his winning the security pact appears to put him back on a strong path.

"Assuming (the next elections) are free and fair ... I am not sure al-Maliki can survive them and get re-elected," said prominent US-based Iraq expert Juan Cole.

Al-Maliki is already showing some of the trappings associated with authoritarian Arab rulers, something certain to be used against him in the run-up to the 2009 elections.

He has exploited the dramatic drop of violence as a tribute to his leadership and coverage of his activities, even the most mundane, dominates the state media's news. There are signs to suggest he intends to do the same with the security pact.

"It's a historic day for our glorious Iraqi people," he said in a televised speech several hours after the passage. "We have realized one of our most important achievements in approving the agreement," he said in a kind of flowery Arabic usually reserved for a military victory.

Prior to the broadcast, state television showed footage of demonstrators hoisting portraits of the prime minister and a recital of a poem that praised his rule, but without mentioning him by name.

"Lame-duck" Prez keeps Obama up all night

sneha — Fri, 28 Nov 2008 15:35:47 +0530

US President-elect Barack Obama. Photo Courtesy: AP

"Lame-duck" Prez keeps Obama up all night

Fri-Nov 28, 2008

Washington / Press Trust of India

US President-elect Barack Obama spends sleepless nights worrying about the fate of America in the face of a looming recession, with a "lame duck" in charge of the country.

With few more weeks to go until he takes over the charge at Oval, Obama in an interview to ABC News' Barabara Walters spoke about his "biggest fear" that keeps him awake all night.

"There are a lot of things that keep me up all night..One of the concerns I have is that the economy is so weakened that the next 60 days are going to be difficult because we've got a president who, even though he may mean well, is now sort of in lame-duck status (and) Congress isn't in (session)."

"And I don't have the reins of power," Obama added.

He, however, parried a question about what his government would do after coming to power on January 20.

"I am not a miracle worker," he said but added that he and his team would carefully review the way the Bush administration distributes bailout funds to Wall street banks seeking emergency assistance.

Calling automaker executives "tone deaf", he said the "captains of industry" on Wall Street and in Detroit don't have "any perspective on what's happening to ordinary Americans".

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Russia to deploy new missile from 2009: Military

sneha — Fri, 28 Nov 2008 15:17:29 +0530

Russia will from December 2009 deploy its new RS-24 intercontinental missile, designed to counter defence systems like the controversial US missile shield, the military announced on Friday.

The announcement of the deployment of the RS-24, a multiple-warhead, nuclear-capable missile, came amid continued disagreement between Moscow and Washington over US missile defence plans.

"It is expected the new missile complex including the RS-24 intercontinental ballistic missile will be deployed with Russian forces from 2009," Nikolai Solovtsov, the commander of Russia's missile forces, told Russian news agencies.

"It is planned that the main regiment equipped with this missile... and one squadron will be put on combat duty in the Teikovo missile unit in December 2009," he said, referring to a base northeast of Moscow.

The military on Wednesday successfully test-fired the RS-24 for the third time, launching it from northern Russia and hitting targets 6,000 kilometres away on the Kamchatka Peninsula that juts into the Pacific Ocean.

The earlier tests took place in May and December 2007. Experts and Russian news agencies have said the missile is capable of carrying three nuclear warheads. The military has said the RS-24 is designed to overcome air-defence systems such as the controversial US missile shield planned for deployment in eastern Europe.

Iraq vote on US pact snarled on Baathist purge

sneha — Thu, 27 Nov 2008 13:50:24 +0530

Iraqi lawmakers struggled on Thursday to assemble a commanding majority to approve a wide-ranging US military pact held up by Sunni demands for greater amnesty for Saddam Hussein's Baath party.

The 275-member assembly, mired in 11th hour horse-trading, failed on Wednesday to approve the accord, which would require all US troops to withdraw by the end of 2011, bringing an end to the 2003 invasion that toppled the dictator and plunged the country into violent sectarian chaos.

The governing Shiite bloc was struggling to cobble together a vast majority to approve the pact amid Sunni and Kurdish demands for domestic political reforms and the holding of a popular referendum on the pact in 2009.

Government spokesman Ali al-Dabbagh said the negotiations would continue on Thursday, with a meeting between MPs from the United Iraqi Alliance (UIA), the governing Shiite bloc, and the National Concord Front, the main Sunni bloc.

"There are some parties expecting benefits from the situation. The government is ready to listen to all the specific demands, but without undermining the constitution," Dabbagh told AFP.

"Concerning the de-Baathification, it is in the constitution, and you cannot cancel it," he said, referring to the controversial Justice and Accountability Law that gave differing degrees of amnesty to most former Baathists.

Sunni demands

A senior Shiite MP said negotiators had addressed most of the Sunni demands but could not budge on their call for the repeal of the law.

"The United Alliance will propose a new document today that does not differ much from the document advanced by Concord," said MP Ali al-Adeeb.

"The difference between them has to do with a demand from the first document, which clearly pointed to the cancellation of the Justice and Accountabiliy Law," he said.

Saddam's Baath Party was banned by Iraq's US occupiers in the aftermath of the March 2003 invasion and hundreds of thousands of party members -- disproportionally drawn from the Sunni community -- lost their jobs.

It was hoped that the bill passed in February would appease embittered former Baathists, many of whom have joined the ranks of the insurgency against US and Iraqi forces, but Sunnis slammed the law as not going far enough.

The government on Wednesday accepted the Sunni bloc's other main demand and agreed to hold a referendum on the pact seven months after it comes into force.

"The referendum is not a problem. There will be a vote on July 30. The only thing is that the referendum needs a law, because it needs to be regulated," Dabbagh said.

Marathon negotiations

Iraq and the United States have held marathon negotiations over the past 11 months in a bid to nail down an agreement to govern some 150,000 US troops in over 400 bases when their UN mandate expires on December 31.

The accord includes a firm timetable for withdrawal that would have US troops leave all Iraqi cities and towns by the end of June and withdraw completely by the end of 2011.

The White House also said it was still hopeful the accord would be approved.

"It's good for both Iraq and the United States, and so we'll keep an eye on what they are doing and hopefully they'll be able to get it across the goal line," White House spokesman Tony Fratto said on Wednesday.

The pact has the support of the UIA, the Kurdish alliance and a number of independent MPs -- enough for it to pass with slightly more than the requisite simple majority of 138 votes.

But the Shiite-led government was hoping to assemble a broader coalition in support of the pact, which was approved by Iraq's cabinet more than a week ago.

Iraq won a number of concessions in the deal, including a hard timeline for withdrawal and veto power over virtually every operation launched by US forces once the agreement takes effect, according to the Arabic version of the pact.

The English version has not been made public, and US officials in Washington have said there may be a dispute between the two sides over the interpretation of certain parts of the agreement.

World leaders condemn Mumbai attacks

wali — Thu, 27 Nov 2008 02:35:13 +0530

World leaders condemned overnight attacks by gunmen in India's commercial hub Mumbai in which at least 86 people were killed and 250 others wounded.

US President George W Bush

"President Bush offers his condolences to the Indian people and the families of the innocent civilians killed and injured in the attacks in Mumbai," the White House said in a statement.

US President-elect Barack Obama

"President-elect Obama strongly condemns today's terrorist attacks in Mumbai," said a statement by Brooke Anderson, Obama's spokeswoman on national security.

"These coordinated attacks on innocent civilians demonstrate the grave and urgent threat of terrorism."

"The United States must continue to strengthen our partnerships with India and nations around the world to root out and destroy terrorist networks."

"We stand with the people of India."

British Prime Minister Gordon Brown

"These outrageous attacks in Mumbai will be met with a vigorous response. I have sent a message to Prime Minister Singh that the UK stands solidly with his government as they respond, and to offer all necessary help. Urgent action is underway to offer every possible protection to British citizens in the region," Brown said in a statement by his office.

British Foreign Secretary David Miliband

"Today's attacks in Mumbai which have claimed many innocent victims remind us, yet again, of the threat we face from violent extremists. I condemn these attacks unreservedly. Our thoughts are with the families and friends of those killed and injured. The UK and India will continue their joint efforts to counter the actions of terrorists," said a statement released on the Foreign Office website.

Acting Australian Foreign Minister Simon Crean

"This is a cowardly act, it's indiscriminate, it's a terrorist act, it's insulting democracy, and it takes as victims and casualties innocent people," Crean told reporters.

Russian President Dmitry Medvedev

"We are concerned about the loss of life and consider that acts of terrorism of this type are harmful to the whole international order and are a challenge to humanity," Medvedev said through a translator during a visit to Venezuela.

Pakistan Foreign Minister Shah Mehmood Qureshi

"I assure the Indian government of our complete cooperation and support. Terrorism is a global phenomenon. We in Pakistan deal with it on a daily basis," Qureshi said recalling that Islamabad had witnessed a similar incident recently.

"I am shocked and horrified at the Mumbai incidents. No civilised society can tolerate such incidents" said Mehmood Qureshi. We will have to join all our resources to fight the menace. The Joint Anti-Terror Mechanism needs to be strengthened further. It needs to meet frequently," he said.

Chinese premier Wen Jibao

On behalf of the Chinese government and himself, Wen expressed deep grief for the victims of the attacks and conveyed sincere condolences to the relatives of the victims and those wounded in the violence, the official Xinhua news agency reported.

Spokesman for Ban Ki-Moon, UN Secretary General

The secretary general condemns the rash of shootings and blasts in Mumbai on Thursday, which killed and wounded a large number of people. Such violence is totally unacceptable.

The secretary general reiterates his conviction that no cause or grievance can justify indiscriminate attacks against civilians. He calls for the perpetrators to be brought to justice swiftly.

Hesends his deepest sympathies to the families of the victims and the wounded and expresses his solidarity with the people and government of India.

Ambassador Mulford

"US Govt is shocked and deeply saddened by tragic loss of life caused by these vicious acts of terrorism. The US has offered extensive assistance to deal with this ongoing crisis and stands ready to assist as the situation unfolds," Mulford said.

India rejects US intervention on Kashmir issue

wali — Wed, 26 Nov 2008 23:45:29 +0530

Amid reports that the next US administration might appoint former President Bill Clinton as a mediator on Kashmir, India on Wednesday night rejected any third party intervention and asserted that the matter would have to be addressed bilaterally with Pakistan.

The assertion by External Affairs Minister Pranab Mukherjee came after his talks with Pakistan Foreign Minister Shah Mehmood Qureshi during which the two sides agreed on the need to resolve outstanding issues expeditiously and enhance the bilateral ties in trade and other fields.

The two sides also discussed the problem of terrorism, with Pakistan saying that it is a "common threat" and should be fought jointly by the two countries.

Addressing a joint press conference with Qureshi after their 90-minute talks, Mukherjee said the two sides discussed ways to build on the initiatives taken to improve ties, including launching cross-LoC trade and in-principle agreement to open the Wagah-Attari and Khokhrapar-Munnabao borders for commerce.

When referred to reports that the Barack Obama administration could appoint Clinton as a mediator on Kashmir, Mukherjee said "Jammu and Kashmir is essentially a bilateral issue which we have agreed to resolve bilaterally from the Simla agreement to Lahore Declaration".

He said the issue is to be resolved through bilateral talks between the two countries. "Therefore, there is no question of any intervention by any third quarter," he said.

To a question, Qureshi said Kashmir is an "important segment" of the dialogue process between the two countries and pointed out that Foreign Secretaries of the two countries would be discussing it under the fifth round of Composite Dialogue which has got underway.

EU, China, US unleash global assault on crisis

wali — Wed, 26 Nov 2008 19:59:27 +0530

The EU proposed a 200-billion-euro stimulus package on Wednesday to jolt Europe's economy out of recession, as China cut its interest rates and the United States poured yet more cash into the economy.

The EU package, worth 259 billion dollars, coincided with new evidence of the social effects of the financial crisis and economic slowdown, and as officials in China reported riots by unemployed workers.

Draft proposals of the package obtained earlier by AFP urged EU members to loosen the purse strings and ease some taxes in the face of the worst economic downturn in decades.

"Only through a significant stimulus package can Europe counter the expected downward trend in demand, with its negative knock-on effects on investments and employment," said the draft document.

While Brussels has been drafting pan-European recovery plans, a growing number of individual EU countries have pressed ahead with their own national packages.

German Chancellor Angela Merkel warned against a "race" between EU states over the size of their economic stimulus measures. Germany -- one of the few European states with strong finances -- was already doing enough, she said.

Countries across the world have launched tax and spending programmes designed to encourage spending and business activity, with a coordinated EU-wide plan seen as more effective than individual country efforts.

China launched a 586-billion-dollar economic stimulus package in early November and the country's central bank on Wednesday announced a further cut of 1.08 percentage points to interest rates to spur growth in the emerging giant.

But hundreds of Chinese workers sacked from a toy factory clashed with police and smashed buildings in the southern province of Guangdong, authorities said, in the latest bout of violent unrest linked to rising unemployment.

Widespread redundancies

In other changes linked to the global slowdown, the number of jobseekers applying to the civil service in Hong Kong has soared amid widespread redundancies by private sector firms hit by the global crisis.

The Civil Service Bureau said it had received more than 24,000 applications for just 400 assistant clerical officer vacancies.

In Washington on Tuesday, the Federal Reserve said it would pump a massive 800 billion dollars more into the economy to try to stabilise the staggering US financial system.

Up to 600 billion dollars will go towards purchases of mortgage securities, and 200 billion dollars to asset-backed securities to help get credit to consumers.

The new efforts are designed to thaw credit markets, promote liquidity and bring down borrowing costs for the housing market, which is at the centre of the economic storm that has dragged down the global economy.

In Argentina, President Cristina Kirchner proposed tax and investment incentives to help cushion the impact of the global financial crisis on the nation and to encourage the repatriation of capital.

She also unveiled a massive public spending plan to pump more than 21 billion dollars into Argentina's infrastructure.

On global stock markets, Asian shares closed mixed, while European markets were under pressure after two days of large gains.

European stocks sank as investors digested the EU plan and the US Federal Reserve's move to unblock credit markets. Frankfurt shed 1.06 percent, Paris dipped 2.15 percent and London lost 1.84 percent near the half-way stage.

"The picture is still very bleak," said Joshua Raymond, Market Strategist at City Index in London.

The Commerce Department reported that the US economy shrank at a pace of 0.5 percent in the third quarter, in a revised estimate for gross domestic product that many analysts say is the start of a steep downturn.

US President-elect Barack Obama, who has also vowed a stimulus package for the US economy, was to name the former chairman of the Federal Reserve Paul Volcker as a senior economic adviser, the Wall Street Journal reported.

On Tuesday a report by the Organization for Economic Co-operation and Development said many rich countries faced their worst economic crisis since the 1980s.

Eight million more people could be thrown out of work by 2010 in the 30-country zone of industrialised nations, said the OECD.

Iran claims to running over 5,000 centrifuges

megha — Wed, 26 Nov 2008 19:01:20 +0530

Iran has more than 5,000 centrifuges to process uranium at its enrichment plant, its nuclear chief said on Wednesday, in the country's latest defiance of UN demands that it halt the controversial program.

The Iranian official, Gholam Reza Aghazadeh, said Iran will continue to install centrifuges and enrich uranium to produce nuclear fuel for the country's future nuclear power plants.

The number of centrifuges is up from 4,000 Iran said were running in August at the plant in the central Iranian city of Natanz. Uranium enriched to low level is used to produce nuclear fuel. Further enrichment makes it suitable for use in nuclear weapons.

The United States and some of its allies accuse Iran of seeking to build nuclear weapons. Tehran denies the claim and insists it has the right under the Nuclear Nonproliferation Treaty to enrich uranium and produce reactor fuel.

"At this point, more than 5,000 centrifuges are operating in Natanz," said Aghazadeh, who is head of the Atomic Energy Organization of Iran. He spoke to reporters during an exhibition of Iranian nuclear achievements at Tehran University.

The United Nations Security Council has already imposed three rounds of sanctions on Iran for its refusal to freeze the uranium enrichment program.

In the process, uranium gas is spun in a series of centrifuges known as "cascades" to purify it. Lower levels of enrichment produce reactor fuel but higher grades can build a weapon.

At the exhibition, Iran for the first time put on public display one of its P-1 centrifuges and officials at the exhibition explained various parts of machine to visitors. The P-1 centrifuge is the workhorse of Iran's enrichment program. It's run in cascades of 164 machines.

In February, Iranian officials confirmed that they have started using the IR-2 centrifuge, which can churn out enriched uranium at more than double the rate of P-1.

Iran has said it plans to move toward large-scale uranium enrichment that will ultimately involve 54,000 centrifuges.

Traces of melamine found in US infant formula

megha — Wed, 26 Nov 2008 18:06:22 +0530

Traces of the industrial chemical melamine have been detected in samples of top-selling US infant formula, but federal regulators insist the products are safe.

The Food and Drug Administration said last month it was unable to identify any melamine exposure level as safe for infants, but a top official said it would be a "dangerous overreaction" for parents to stop feeding infant formula to babies who depend on it.

"The levels that we are detecting are extremely low," said Dr Stephen Sundlof, director of the FDA's Center for Food Safety and Applied Nutrition. "They should not be changing the diet. If they've been feeding a particular product, they should continue to feed that product. That's in the best interest of the baby."

Melamine is the chemical found in Chinese infant formula - in far larger concentrations - that has been blamed for killing at least three babies and making at least 50,000 others ill.

Previously undisclosed tests, obtained by The Associated Press under the Freedom of Information Act, show that the FDA has detected melamine in a sample of one popular formula and the presence of cyanuric acid, a chemical relative of melamine, in the formula of a second manufacturer.

Separately, a third major formula maker told AP that in-house tests had detected trace levels of melamine in its infant formula. The three firms - Abbott Laboratories, Nestle and Mead Johnson - manufacture more than 90 percent of all infant formula produced in the United States.

The FDA and other experts said the melamine contamination in US-made formula had occurred during the manufacturing process, rather than intentionally. The US government quietly began testing domestically produced infant formula in September, soon after problems with melamine-spiked formula surfaced in China.

Sundlof said there have been no reports of human illness in the United States from melamine, which can bind with other chemicals in urine, potentially causing damaging stones in the kidney or bladder and, in extreme cases, kidney failure.

Melamine is used in some US plastic food packaging and can rub off onto what we eat; it's also contained in a cleaning solution used on some food processing equipment and can leach into the products being prepared.

Sundlof told the AP the positive test results "so far are in the trace range, and from a public health or infant health perspective, we consider those to be perfectly fine."

That's different from the impression of zero tolerance the agency left on October 3, when it stated: "FDA is currently unable to establish any level of melamine and melamine-related compounds in infant formula that does not raise public health concerns."

FDA scientists said then that they couldn't set an acceptable level of melamine exposure in infant formula because science hadn't had enough time to understand the chemical's effects on infants' underdeveloped kidneys. Plus, there is the complicating factor that infant formula often constitutes a newborn's entire diet.

The agency added, however, that its position did not mean that any exposure to a detectable level of melamine and melamine-related compounds in infant formula would result in harm to infants.

Still, the announcement was widely interpreted by manufacturers, the news media and Congress to mean that infant formula that tested positive at any level could not be sold in the United States.

The Grocery Manufacturers Association, for example, told its members: "FDA could not identify a safe level for melamine and related compounds in infant formula; thus it can be concluded they will not accept any detectable melamine in infant formula."

It was not until the AP inquired about tests on domestic formula that the FDA articulated that while it couldn't set a safe exposure for infants, it would accept some melamine in formula - raising the question of whether the decision to accept very low concentrations was made only after traces were detected.

On Sunday, Sundlof said the agency had never said, nor implied, that domestic infant formula was going to be entirely free of melamine. He said he didn't know if the agency's statements on infant formula had been misinterpreted.

In China, melamine was intentionally dumped into watered-down milk to trick food quality tests into showing higher protein levels than actually existed. Byproducts of the milk ended up in infant formula, coffee creamers, even biscuits.

The concentrations of melamine there were extraordinarily high, as much as 2,500 parts per million. The concentrations detected in the FDA samples were 10,000 times smaller - the equivalent of a drop in a 64-gallon trash bin.

No economic advantage

There would be no economic advantage to spiking US-made formula at the extremely low levels found in the FDA testing. It neither raises the protein count nor saves valuable protein, said University of California, Davis chemist Michael Filigenzi, a melamine detection expert.

According to FDA data for tests of 77 infant formula samples, a trace concentration of melamine was detected in one product - Mead Johnson's Infant Formula Powder, Enfamil LIPIL with Iron. An FDA spreadsheet shows two tests were conducted on the Enfamil, with readings of 0.137 and 0.14 parts per million.

Three tests of Nestle's Good Start Supreme Infant Formula with Iron detected an average of 0.247 parts per million of cyanuric acid, a melamine byproduct.

The FDA said last month that the toxicity of cyanuric acid is under study, but that meanwhile it is "prudent" to assume that its potency is equal to that of melamine.

And while the FDA said tests of 18 samples of formula made by Abbott Laboratories, including its Similac brand, did not detect melamine, spokesman Colin McBean said some company tests did find the chemical. He did not identify the specific product or the number of positive tests.

McBean did say the detections were at levels far below the health limits set by all countries in the world, including Taiwan, where the limit is 0.05 parts per million.

"We're talking about trace amounts right here, and you know there's a lot of scientific bodies out there that say low levels of melamine are always present in certain types of foods," said McBean.

Mead Johnson spokeswoman Gail Wood said her company's in-house tests had not detected any melamine, and that the company had not been informed of the FDA test results, even during a confidential agency conference call Monday with infant formula makers about melamine contamination.

The FDA tests also detected melamine in two samples of nutritional supplements for very sick children who have trouble digesting regular food. Nestle's Peptamen Junior medical food showed 0.201 and 0.206 parts per million of melamine while Nestle's Nutren Junior-Fiber showed 0.16 and 0.184 parts per million.

The agency said that while there are no established exposure levels for infant formula, pediatric medical food - often used in feeding tubes for very sick, young children - can have 2.5 parts per million of melamine, just like food products other than infant formula.

The head of manufacturing for Nestle Nutrition in North America, Walter Huber, said in an interview that the company took samples alongside FDA officials who visited a manufacturing plant, and that those samples showed similar results to what FDA found for the two pediatric medical foods. Huber added that Nestle didn't fund cyanuric acid in any of the samples.

The FDA shared its results with Nestle a few weeks ago, Huber said. He said he wasn't sure whether Nestle had tested other of its products beyond what it did related to the FDA.

Rep Rosa DeLauro, D-Conn, who heads a panel that oversees the FDA budget, said the agency was taking a "marketplace first, science last" approach.

"The FDA should be insisting on a zero-tolerance policy for melamine in domestic infant formula until it is able to determine conclusively based on sound independent science that the trace levels would not pose a health risk to infants," DeLauro said.

Rep Bart Stupak, D-Mich, a frequent critic of the FDA, said: "If no safe level of melamine has been established for consumption by children, then the FDA should immediately recall any formula that has tested positive for even trace amounts of the contaminant."

Several medical experts said trace concentrations would be diluted even in an infant, and are highly unlikely to be harmful. "It's just a tiny amount, it's very unlikely to cause stones," said Stanford University Medical School pediatrics professor Dr Paul Grimm.

Dr Jerome Paulson, an associate professor of pediatrics at Children's National Medical Center in Washington, D C, said he didn't think the FDA's decision was unreasonable.

He added, however, that the agency should research the impacts of long-term, low-dose exposure, "and not just assume it's safe, and then 15 years from now find out that it's not."

US forces slay 25 militants in Afghanistan

megha — Wed, 26 Nov 2008 16:50:43 +0530

Soldiers in a US-led coalition killed 25 militants in various operations across Afghanistan over the past two days, including some linked to al Qaida, the US military said on Wednesday.

Fifteen were killed in a raid early today in the southern province of Kandahar against a known "command and control" centre for bomb-makers, it said in a statement.

Troops on the raid came under fire at the compound in the district of Zhari just west of Kandahar city, the statement said. "Coalition forces returned fire with small arms weapons killing 15 insurgents and detained six," it said.

Another operation on Tuesday targeted a senior Taliban commander in the eastern province of Paktya who was believed to liaise between al Qaida and the Taliban, another statement said.

Five militants were killed in a clash at the site, it said, without making clear if the commander was among the dead.

Five more were killed and four arrested in another raid on Tuesday in the adjoining province of Paktika that targeted the radical Haqqani network, which is linked to al Qaida.

"We continue to disrupt terrorist networks, stemming the flow of weapons and supplies that are used against innocent Afghan civilians," spokesman Colonel Jerry O'Hara said.

There are about 33,000 US soldiers in Afghanistan as part of international forces helping the government fight an insurgency led by the Taliban, who were in government between 1996 and 2001.

Karzai slams US, NATO for 'parallel' govt

megha — Wed, 26 Nov 2008 15:48:50 +0530

President Hamid Karzai criticized the US and other foreign countries for creating a "parallel government" in the countryside during a blunt overview of Afghanistan's problems before a UN Security Council delegation.

Karzai called on Tuesday for the international community to set a timeline to end the war in Afghanistan and asked why - given the number of countries involved and the amount of money spent - the Taliban remains so powerful.

"This war has gone on for seven years, the Afghans don't understand anymore, how come a little force like the Taliban can continue to exist, can continue to flourish, can continue to launch attacks," he asked.

With an entire NATO force in Afghanistan and the entire international community behind them, "still we are not able to defeat the Taliban," Karzai told the gathering at his presidential palace.

Karzai - facing re-election next year and making increasing overtures to conservative Afghan tribes most likely to vote for him - has been criticized for being ineffective and weak, while his government was accused of deep-seated corruption.

The president's Tuesday comments appear to be a response to that criticism and lay the blame for the deteriorating security situation and other woes on the international community.

Foreign governments, the United States in particular, have been ramping up military and aid efforts in Afghanistan. The US has some 32,000 troops in the country, but military leaders say up to 20,000 more could be sent to Afghanistan next year.

President-elect Barack Obama has said he will increase America's focus on Afghanistan. Despite that, Karzai for the first time said a timeline for the end of the war needs to be set. "If there is no deadline, we have the right to find another solution for peace and security, which is negotiations," Karzai said.

International forces have set up a countryside system of joint military and civilian teams whose primary task is not combat but reconstruction and development. But Karzai said the presence of the so-called provincial reconstruction teams, or PRTs, has undermined provincial governments.

"The problem here is, in a diverting play, the presence of the international community has created a parallel government to those such as of the Afghan government that are functioning.

The PRTs in certain parts of the country have become a parallel structure to the governor of the province," he told the UN team.

Karzai did not elaborate on how the reconstruction teams had created parallel governments, but the significant amount of international aid attached to them would wield substantial influence in impoverished regions.

He also complained that private security companies "have become a parallel structure to the security forces of Afghanistan," employing thousands of Afghans, most with criminal backgrounds, who are "equally as harassing to the Afghan population as Taliban and other terrorist outfits."

An estimated 40,000 private security guards are employed in Afghanistan, a senior NATO official said on condition of anonymity because he was not authorized to release the figure.

Security has deteriorated in Afghanistan since the presidential elections in 2004, because the international community lost focus and allowed the Taliban to regroup and create sanctuaries in neighboring Pakistan, which were not addressed until last year, Karzai said.

"Rather than conducting the war against terrorism, and the sanctuaries, we began to conduct this war in the villages of Afghanistan where there were no terrorists," Karzai said.

He said bombings and operations in the villages must stop, a demand he has made repeatedly in the face of civilian deaths from US and NATO bombings.

Despite billions of dollars in aid and major construction finished since the a US-led invasion ousted the Taliban in 2001, Karzai said Afghan people have not seen security. He called for more investment to develop and quickly expand the army and police force.

Meanwhile, the US military said its troops killed 25 militants and detained 10 more in operations in the east and south of the country, which are centers of the Taliban-led insurgency.

On Wednesday, troops killed 15 militants and detained four others in a raid on a compound associated with a roadside bombing network in southern Kandahar province, the military said in a statement. Another 10 militants were killed during raids in eastern Paktia and Paktika provinces on Tuesday, the statement said.

More than 5,500 people - mostly militants - have been killed in insurgency-related violence this year according to an Associated Press tally of figures provided by Afghan and Western officials.

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Karzai seeks timeline to end military intervention

Obama picks graybeards as wartime Cabinet

manoj — Wed, 26 Nov 2008 13:26:22 +0530

US President elect, Barack Obama. Photo Courtesy: AFP.

Obama picks graybeards as wartime Cabinet

Wed-Nov 26, 2008

Washington / Associated Press

Barack Obama's campaign credo: Change is good. President-elect Barack Obama's credo: When it comes to war and peace, maybe wisdom is better.

Obama has assembled a national security brain trust populated by graybeard establishment figures with decades of combined experience and even a few medals. He is entrusting critical wartime management to people with unassailable credentials and low buzz factor.

The best example of the Obama Battleplan Version 2.0 is Robert Gates.

Obama's insurgent candidacy was founded on his opposition to the Iraq war and a promise to end it, fast.

But with a crushing global financial crisis supplanting Iraq as the No 1 priority, the Democrat has turned to the very man running the Iraq and Afghan wars for the current Republican president, officials confirmed to The Associated Press.

Gates, who has served as President George W Bush's defense secretary for two years, will remain in the Cabinet for some time, probably a year, according to an official familiar with discussions between him and the president-elect. His appointment would fulfill an Obama pledge to include a Republican in his Cabinet.

A source close to the current Pentagon leadership cautioned that Gates had not agreed to a specific exit date. Like those describing Obama's job offers, the source spoke on condition of anonymity because Obama has not announced the personnel choices.

For the critical inside job of national security adviser, Obama wants a 6-foot-4 (1.93-meter) retired Marine general who hung his hat most recently at the US Chamber of Commerce.

A Democratic official said retired Marine General James Jones was Obama's pick to head the National Security Council, the part of the White House structure that deals with foreign policy.

Jones, 64, has been a respectful critic of some Bush administration war strategy, especially in Afghanistan, and his priorities and world view seem in line with Obama's.

But he's no liberal. The former NATO Supreme Allied Commander in Europe was named last year to head an energy initiative for the Republican-friendly Chamber of Commerce, and he also served as a special Mideast peace adviser for the Bush administration.

Democratic officials earlier confirmed that Obama had offered the prestigious post of secretary of state to Senator Hillary Rodham Clinton.

The Clinton pick brings a vanquished opponent into Obama's fold. It also means the 47-year-old Obama is hiring a respected foreign policy wonk who argued during the tense Democratic primary that she was the person you really wanted answering that 3 am phone call of doom.

Obama is expected to announce his national security roster next week.

"You have a young president still trying to establish his bona fides and he has to have a seasoned team," said Stephen Flanagan, director of the international security program at the Center for Strategic and International Studies.

Where do you go to get a seasoned team? Well, to people seasoned in one previous administration or another.

Flanagan counts Gates and Jones as career public servants without a strong ideological stamp. Clinton, 61, may carry ideological baggage, but she also brings a record of bipartisan cooperation in the Senate and tested Midwestern grit and determination.

The Gates pick affords Obama some time to cope with the crumbling economy even as it risks disappointing the anti-war Democrats who launched his candidacy.

Gates was a member of the bipartisan Iraq Study Group and is widely respected by Democrats in Congress, but he retains strong Republican lineage.

The 65-year-old climbed the CIA bureaucracy from an entry-level position to become director under President George HW Bush. He also served on the elder Bush's National Security Council, as he had for Presidents Jimmy Carter and Ronald Reagan.

Gates helped lead US efforts to drive the Soviets out of Afghanistan in the 1980s while at the CIA and was deputy national security adviser during Operation Desert Storm, the first US-led invasion of Iraq.

Gates is a close friend of the Bush family. He was interim dean of the George Bush School of Government and Public Service at Texas A&M and became the university's president in 2002. The school is home to the elder Bush's presidential library.

When the younger Bush called, Gates reluctantly left his university post two years ago to take over the Pentagon from the rancorous Donald H. Rumsfeld.

Gates spokesman Geoff Morrell would not confirm that Gates has been offered the job by Obama.

"He has never closed the door on the possibility of serving if needed, but his preference has always been to go back home," when the Bush administration ends, Morrell said.

Gates supported the Iraq war and the military buildup there, although he has also endorsed new efforts to draw down forces in Iraq and beef up troop numbers in Afghanistan — a strategy also voiced by Obama.

Gates has won praise from Democrats for his willingness to work with all sides on Capitol Hill and his moves to swiftly remove Pentagon leaders who he believed were not performing. During his brief tenure he has fired the Army and Air Force secretaries as well as the Air Force chief of staff.

Jon Soltz, an Iraq war veteran and chairman of VoteVets.org, a veterans advocacy group, said his group has been hard on the Bush administration but holds respect for Gates.

"He comes across as very honest, and has a lot of humility," Soltz said. And he's not worried that Gates will be hobbled by his previous associations.

"It's more about the policy than it is about the person in that role. It's the commander in chief that guides policy," he adds.

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AIG caps CEO salary at $1

sneha — Wed, 26 Nov 2008 12:55:17 +0530

Amid the financial crisis scourging the global markets, troubled insurance giant AIG's chief executive salary has been restricted to a nominal one dollar for 2008 and 2009, while there would be no pay hikes for its top executives through 2009.

The US government on November 11 nearly doubled the bailout package to $150 billion from more than $80 billion announced earlier.

Separately, the leading German reinsurance company Munich Re on Wednesday said that it is interested in buying the life insurance business of AIG in Asia.

Announcing compensation restrictions that go beyond the government's directive as part of its bailout package, AIG on Wednesday said that that its CEO Edward M Liddy would be given a annual salary of just one dollar in 2008 and 2009.

There also would be no annual bonuses or salary increases in 2009 for AIG's top-seven-officer Leadership Group, AIG said.

Besides, AIG has also decided against any salary hikes throughout 2009 for the 50 next-highest executives, in addition to other bonus, severance and retention award restrictions.

AIG is planning to sell some of its assets, including life insurance business in the US, Europe, Latin America and Japan, to recover from a financial mess.

AIG also said that it is developing a funding structure to ensure that no taxpayer dollars are used for annual bonus or future cash performance awards for AIG's "Senior Partners," or the top 60 management people.

The move

Commenting on the move, AIG Chairman and CEO Liddy said, "AIG's senior executives recognise AIG's obligation to taxpayers".

"We are extremely grateful for the assistance we have received, and we know we have an obligation to use that assistance to help AIG recover, contribute to the economy and repay taxpayers," Liddy said.

The initial compensation for Liddy, who joined AIG on September 18, will consist entirely of equity grants, showing his confidence in AIG and its team.

While he would not receive an annual bonus in 2008 and 2009, he might be eligible for a special bonus for extraordinary performance payable in 2010. Besides, Liddy will not be eligible for severance payments.

Besides, Paula Rosput Reynolds, Vice-Chairman and Chief Restructuring Officer, who joined AIG in October, will receive no salary or bonus in 2008. In 2009 and beyond, other than her base salary, any other compensation she receives will be tied directly to the progress of the restructuring efforts.

The other five members of AIG's top-seven-officer Leadership Group will not receive annual bonuses for 2008 or salary increases through 2009.

AIG's Senior Partners will not earn long-term performance awards in 2008 and they will not receive salary hikes in 2009, and their 2008 and 2009 annual bonuses will be limited.

Paulson pulling more tricks to bolster US economy

sneha — Wed, 26 Nov 2008 11:41:52 +0530

With the economy showing further signs that it is headed into a steep swoon, Treasury Secretary Henry Paulson is pulling more tricks out of his bag to try bolster the country's battered financial sector.

The administration and the Federal Reserve rolled out two new programs on Tuesday that would provide up to $800 billion in an effort to get more loans flowing in such critical areas as mortgage lending, credit cards, auto loans and small business loans.

Credit markets liked the new efforts, but private economists said the new moves were not likely to be the last changes in the government's vast rescue program, which has already undergone significant alterations since it was passed by Congress on October 3.

Analysts believe more work will need to be done because of their expectations that the economy's vital signs will continue to worsen as the country slips into what many believe could be the worst recession since the early 1980s.

More news on economic performance will be revealed on Wednesday with release of data on personal spending, orders to factories for big-ticket durable goods, new home sales and weekly applications for unemployment benefits.

The report on jobless claims is expected to show that applications for benefits fell slightly last week to 537,000, according to a survey of economists by Thomson Reuters. That would be down by 5,000 from the previous week when claims hit 542,000, the highest level for weekly claims since July 1992. Even with the tiny drop, analysts said claims remain at levels indicating severe stress on the labor market.

High unemployment rate

The unemployment rate has hit a 14-year high of 6.5 percent, putting pressure on personal incomes, with income growth expected to be a modest 0.1 percent for November, according to the Thomson Reuters survey. These Wall Street economists are expecting that consumer spending plunged by 0.9 percent in October, a dismal showing that would follow a period of extended weakness.

The government reported on Tuesday that the overall economy, as measured by the gross domestic product, shrank at an annual rate of 0.5 percent in the July-September quarter, reflecting the fact that consumer spending, which accounts for two-thirds of economic activity, fell at the fastest pace in 28 years.

A weak reading for October would indicate that the current quarter could be off to a rocky start. Nariman Behravesh, an economist at IHS Global Insight, said he was expecting GDP to shrink at a 4 percent rate in the current quarter, reflecting the battering consumers are taking from the worst financial crisis since the 1930s. He predicted that the economy would remain in recession through the first half of 2009.

"We are in the early stages of one of the worst recessions in the postwar period, even factoring in a massive stimulus program," Behravesh.

The other reports due out on Wednesday were also expected to show further October weakness with orders to factories for big-ticket durable goods plunging by 3 percent and sales of new homes falling by 3 percent, according to the Thomson Reuters survey.

To revive the economy, President-elect Barack Obama has said a top priority will be working with Congress to enact a stimulus package with the goal of creating 2.5 million new jobs over the next two years. Analysts believe such an effort will require spending between $500 billion to $700 billion, a figure that would be on top of all the money being spent to stabilize the financial system.

Latest efforts

In the latest efforts to stabilize the financial system, the Federal Reserve announced on Tuesday that it will buy $200 billion in securities backed by different types of debt including credit card loans, auto loans, student loans and loans to small businesses. That market essentially froze in October. These types of loans as a result have become harder to obtain and have carried higher interest rates.

The Fed also announced that it will spend $500 billion to buy mortgage-backed securities guaranteed by mortgage giants Fannie Mae and Freddie Mac and another $100 billion to directly purchase mortgages held by Fannie, Freddie and the Federal Home Loan Banks.

This would greatly expand an initial modest effort announced in September with the goal of creating increased demand for mortgage-related assets. The hope is that this will drive down the price of mortgages and make home loans more available.

Analysts predict the Fed program could send mortgage rates down by as much as one-half to a full percentage point in coming months, helping to spur demand in the beleaguered housing market, which is suffering its worst downturn in decades.

The latest federal moves raised US commitments to contain the financial crisis to nearly $7 trillion — though no one thinks the government will actually spend anything like that figure.

In the case of the Federal Reserve, the amount covers huge loans that financial institutions will have to pay back. In the case of the Treasury rescue effort, the government will at some point sell the stock it owns back to the banks, presumably when the banking system is doing better and the stock will be worth more.

US banking profits slump 94%

sneha — Wed, 26 Nov 2008 10:27:09 +0530

The US banking industry's profits slid 94 percent in the third quarter from 2007 to $1.7 billion, reflecting the credit crisis ravaging the sector and overall economy, regulators said on Wednesday.

The Federal Deposit Insurance Corp said insured commercial banks and savings institutions saw a massive drop from collective profits of $28.7 billion in the third quarter of 2007.

"With the exception of the fourth quarter of last year, the latest earnings were the lowest for the industry since the fourth quarter of 1990," the agency said.

"We've had profound problems in our financial markets that are taking a rising toll on the real economy. Today's report reflects these challenges," said FDIC chairman Sheila Bair in a statement.

FDIC cited higher provisions for loan losses as the primary reason for the drop in industry profits.

The industry also reported $7.6 billion in losses on sales of securities and other assets in the third quarter, compared to $77 million in gains a year earlier.

Many banks wrote down the value of mortgage securities and other assets affected by the crisis, FDIC noted.

Nine insured institutions failed in the third quarter, the most since the third quarter of 1993.

US cools on NATO path for Georgia, Ukraine

manoj — Wed, 26 Nov 2008 10:13:20 +0530

The United States on Tuesday cooled its support for a formal path to help Georgia and Ukraine join NATO, amid opposition not just from Russia but also from Germany and France.

Speaking to reporters ahead of a NATO foreign ministers meeting next week in Brussels, senior US diplomat Daniel Fried sounded conciliatory notes about how the two former Soviet republics should join the transatlantic alliance.

The issue of an alliance membership action plan (MAP) for Georgia and Ukraine had taken "on a life of its own" since a North Atlantic Treaty Organization summit in Bucharest in April, he said.

In April, the 26-member NATO postponed any decision on offering the two nations a MAP until the December foreign ministers meeting in Brussels.

Fried stressed that the controversy was over the MAP - which is only a "way station" and "mechanism" to achieving full membership - rather than over the long-term goal of having the two join.

"MAP is not the only way to get there," he said.

"I cannot tell you where foreign ministers will come out in this debate," said Fried, the assistant secretary of state for European and Eurasian Affairs who will travel to Brussels with Secretary of State Condoleezza Rice.

"But we think, rather than have a huge debate on MAP, ... we ought to concentrate on the areas where the alliance is already agreed, which is that these countries will join NATO but they have a lot of work to do," he added.

With nine former Soviet bloc countries already NATO members, Russia is fiercely opposed to more Soviet-era Warsaw Pact neighbors like Georgia and the Ukraine even starting the process of joining the western military alliance.

NATO set up the MAP program in 1999 to support prospective members of the military alliance while they carry out the economic, legal, military and political reforms needed to join.

"Let's not debate theology. Let's help Georgia build up much stronger institutions, consolidate its democracy," he said.

"I think it's fair to predict there would be no NATO membership offer for some years to come - just taking a look at these countries (Georgia and Ukraine) realistically," Fried said.

In October, President George W Bush spokeswoman Dana Perino said that there was "no reason" why Georgia and Ukraine should not be given a MAP.

Perino also said Washington had seen "growing support for Georgia and Ukraine given what happened this summer when Russia invaded Georgia," referring to the armed conflict between the neighbors over Georgia's breakaway regions.

NATO members are divided, however, because they see that while membership could stabilize Georgia and Ukraine, it may also raise tensions with Moscow, which considers the move a threat to its own security.

However, France and Germany are opposed, arguing that the early August conflict between Russia and Georgia shows how the move could exacerbate tensions in the Caucasus region.

At the NATO meeting, Fried said, Rice will also discuss US plans to set up an anti-missile shield in Poland and the Czech Republic - strongly opposed by Russia - as well as a strategy to win the war in Afghanistan.

During her tour of Europe, Rice will also visit London, Rome, Helsinki and Copenhagen.

US, Europe vow fresh stimulus efforts

sneha — Wed, 26 Nov 2008 09:34:42 +0530

US and European officials have pledged billions of dollars in fresh cash to battle a credit crunch as a key survey showed wealthy nations face their worst economic slump in decades.

The Federal Reserve said it would pump a massive $800 billion more into the economy on Tuesday to try to stabilize the staggering US financial system.

Up to $600 billion will go towards purchases of mortgage securities, and a separate $200 billion for asset-backed securities to help get credit to consumers.

The new efforts aim to thaw credit markets, promote liquidity and bring down borrowing costs for the housing market, which is at the center of the economic storm which has dragged down the global economy.

In Brussels, draft legislation set to be unveiled on Wednesday called for a "significant" two-year stimulus campaign to jolt embattled European Union economies out of recession.

"Only through a significant stimulus package can Europe counter the expected downward trend in demand, with its negative knock-on effects on investments and employment," said the draft document, obtained by AFP.

The European draft did not say how much the stimulus package could be worth, but commission chief Jose Manuel Barroso has said it should be at least one percent of EU output, which would amount to about 130 billion euros ($170 billion).

France plans to inject 19 billion euros into key industries as part of a stimulus package to kick-start the French economy, Finance Minister Christine Lagarde said.

In more gloomy news, a report by the Organization for Economic Cooperation and Development said the rich world now faces its worst economic crisis since the 1980s.

Jobless total

The OECD said eight million more people could be thrown be out of work by 2010, bringing the OECD area jobless total to 42 million.

Housing prices will continue to fall in many countries and there is a risk the crisis has further to run, with fragile banks exposed to new bad debts, the OECD said in a report on the impact of the global meltdown on 30 its industrialized member countries.

"Many OECD economies are in or are on the verge of a protracted recession of a magnitude not experienced since the early 1980s," OECD chief economist Klaus Schmidt-Hebbel said.

The OECD warned the United States was running up a huge national debt and would see its economy contract 0.9 percent in 2009.

The report predicted a decline in the eurozone by 0.6 percent, Japan by 0.1 percent and the overall OECD zone by 0.4 percent.

The US Commerce Department reported the US economy shrank by 0.5 percent in the third quarter, revising an earlier estimate of 0.3 percent.

The figures were called by "troubling" by the White House, which nonetheless said it was doing all it could to halt the slide.

In his second press conference in two days, president-elect Barack Obama vowed to erase wasteful spending from the deficit-ridden US budget while making wise investments to jump-start the economy.

"If we are going to make the investments we need, we also have to be willing to shed the spending that we don't need," Obama said.

"We can't sustain a system that bleeds billions of taxpayer dollars on programs that have outlived their usefulness or exist solely because of the power of politicians, lobbyists, or interest groups."

'EU Stability and Growth Pact'

France and Germany urged the European Union to ease fiscal rules to allow countries to spend more on recovery efforts.

President Nicolas Sarkozy and Chancellor Angela Merkel said in a joint newspaper article the EU Stability and Growth Pact -- a requirement to hold a public deficit below 3.0 percent of gross domestic product -- should be eased.

In Jerusalem, the Israeli finance ministry unveiled a $2.8 billion plan to restore faith in banks and pension funds after widespread criticism of an earlier economic bailout package.

In Argentina, President Cristina Kirchner proposed tax and investment incentives to help cushion the impact of the global financial crisis on the nation and encourage repatriation of capital.

She also unveiled a massive public spending plan to pump more than $21 billion into Argentina's infrastructure.

Global stock markets struggled after Monday's massive gains. London's FTSE 100 index of leading shares rose 0.44 percent and the Paris CAC-40 gained 1.18 percent.

In a wobbly session on Wall Street, the Dow Jones Industrial Average rose 0.43 percent but the tech-heavy Nasdaq fell 0.50 percent. The broad Standard & Poor's 500 index climbed 0.66 percent.

In Asian trading, South Korean shares opened one percent higher and Hong Kong shares opened 0.9 percent higher, but Australian shares were 0.7 percent lower in early trade, and Japan's Nikkei stock index was down 1.30 percent by lunch, all reacting to lackluster performance overnight on Wall Street.